THE FOREIGN SUBSIDIES REGULATION. MORE THAN A COMPETITION TOOL FOR THE MEDIA SECTOR?

Abstract

Complaints regarding the distortive and unregulated competitive effects of foreign investors sponsored through foreign state subsidies investing in Europe through mergers and acquisitions, public procurement, and greenfield projects, have led to the creation of the Foreign Subsidies Regulation (FSR). Through the FSR, subsidies granted by non-EU governments can be reviewed by the European Commission. The FSR signals a more cautious, protectionist approach to foreign investments in critical sectors to which media and telecom belong to. Through a comparison of select procedural provisions, this article situates the FSR among two other ex-ante regulations, the Foreign Direct Investment Regulation, and the EU Merger Regulation, revealing its striking commonalities with the latter. Media concentration and covert foreign subsidies exceed competition-related concerns to include risks to media capture and foreign interference. While focusing on addressing competition-related market distortions, the FSR plays an unexpected role in the European Media Freedom Act, which addresses the risks of financially statecontrolled 'rogue media service providers'.